Industry Update /
Frank Salt Real Estate

The Film Industry in Malta - an overview

October 5, 2021

A relatively unknown fact is that the film industry in Malta is not new at all. The earliest film on record is a documentary made in 1910 and the first full-length movie dates all the way back to 1925. There may be earlier ones still waiting to be unearthed in the future, but with the history of the local Film Industry well over a century old, Malta’s popularity as a location for filming is ever-increasing and the incentives made available by the government has played a huge role. Malta’s geographical landscape as a backdrop for international blockbusters is only one component of the overall picture (pun intended), as there is a whole lot more on offer in the form of skills, talent, production, engineering and post-production.The backdrop allureHollywood is besotted with Malta as a filming location. The ancient cities, the hues and colours, topography and of course nautical panoramas with their natural wonders are ready-made, saving the industry millions in costs as there is little or no need for CGI or the physical construction of similar looking surroundings to be used on a studio set. A water tank used for filming scenes can also be found at Fort Ricasoli.Favourite locationsInternationally recognised as one of the most iconic producers of all time, Steven Spielberg described Malta as "a great film location". Here are some of the most noteworthy and favourite locations that featured in stand-out blockbuster films, although there are countless others:

  • Mdina
  • Fort Ricasoli
  • Ghajn Tuffieha
  • The Red Fort (St. Agatha’s Tower)
  • The once Azure window and its surrounding area
  • Popeye Village
  • Valletta
  • Fort St. Elmo

The weather Malta’s legendary 300+ days of sunshine a year and the fantastic climate means that filming is possible almost year-round. Notable movies and TV series filmed in Malta

  • Gladiator (2000)
  • World War Z (2013)
  • Captain Phillips (2013)
  • The Da Vinci Code (2006)
  • Troy (2004)
  • The Count of Monte Cristo (2002)
  • Queen of the South (2016–2021)
  • Sense8 (2015–2018)
  • ..and many more

The local talentMalta’s highly educated and English-speaking workforce is always on the ready with experience, expertise and even acting talent as extras in international films. Local companies such as Malta Film Studios have gained an enviable reputation as being one of the biggest production facilities globally, handling anything from commercials to documentaries, TV movies and feature films.Malta University also offers a Master of Arts in Film Studies which teaches techniques in order to plan and shoot a film covering all the steps from script to screen. This is complemented by intensive studying, research, history and more in order to prepare aspirant film makers for the industry.The incentives on offer

  • Cash Rebates

Film makers will be granted a rebate from the government of up to 25% of qualifying expenditure and an additional 2% when they feature the cultural heritage of Malta in a film. Certain understandable criteria apply and the rebate is granted upon completion of filming after the Commissioner has inspected and approved the audit report of a film’s expenses in Malta. All types of film qualify for the incentive given that at least part of it was produced locally.

  • Tax credits and aid

Aid in the form of tax credits are available and is calculated in regards to concrete or estimated investment costs and wages directly related to a film project.

  1. Tax credits for infrastructure related to audio-visual

This is available and applied to a company if it contributes towards Malta’s audio-visual infrastructure. Activities that service film and take place locally are eligible. This tax credit can go up to 50% of their investment spend on audio-visual infrastructure in Malta.

  • Co-production

As a co-signatory of the European Convention on Cinematographic Co-production, Malta’s production companies may be eligible for co-production status and thus the benefits granted to international companies. This apply to all the states that are party to this convention. Additionally there is also information available about a co-production fund that has been established to aid in collaboration, rewarding joint productions, the nurturing of talent and more.

  • Malta Film Fund

Grants are available annually from the fund for the purposes of development and production of short features and documentaries. Applications are subject to an evaluation process first.

  • VAT

The standard rate of 18% in Malta gets slashed down to 7% for hotel accommodation and to 0% for the supply of food or medicine to the film industry. VAT can also be claimed for property rentals, fuel, taxis and car hire and most materials used in the process of producing a film. VAT on intellectual property rights of images, trademarks and more of Malta that are registered to companies that are not resident to Malta are not taxed. Companies that are based here pay a 35% tax on royalties but certain refunds may apply. Malta has long been synonymous with local and international films and documentaries and has wowed global audiences with its spectacular old world mystique. With digital entertainment suppliers on the rise and giants like Netflix sponsoring countless productions, the likelihood of Malta featuring in film and film production will only increase in the future. The revenue associated and generated by international companies bringing their crews and stars here are immensely valuable to related local industries. Think of property rentals, hospitality and accommodation, transport, post-production and not least of all the associated indirect PR for the islands. It is no wonder that they say: “A picture is worth a thousand words”.